Courtesy of Mish.
It’s a love-fest in Asia futures once again, but will it hold on Friday or through the weekend?
One thing’s for sure, sentiment was so sour about this 19th summit, that any bit of good news stood a decent chance of temporarily igniting the market.
You can actually credit German chancellor Angela Merkel for that sour sentiment because she repeatedly stated Germany would not give in. The latest reports suggest Germany did blink, but not enough to please Italy, Spain, and France.
The fact remains that Italy, Spain, and France all want something that is virtually impossible. They demand actions that are against the German constitution. Simply put, it’s not going to happen.
Meanwhile, let’s tune in to what has the futures all excited.
All Night Fight
Please consider the Financial Times report Eurozone officials in all-night aid fight
German officials gave their clearest indication to date that they were prepared to intervene to shore up Italian and Spanish borrowing costs, saying eurozone leaders should use existing powers with their €440bn rescue fund for short-term help.
After weeks of insisting they would not budge on short-term measures, the sudden German acquiescence led to a flurry of activity in Brussels, where EU leaders gathered for the latest in a series of high-stakes summits intended to solve the crisis.
Unexpectedly, senior officials from all 17 eurozone finance ministries met on the sidelines of the summit to weigh emergency plans for Rome and Madrid which focused on using the rescue fund to buy Italian and Spanish bonds to reverse the recent spike in yields.
That certainly isn’t much.
Indeed this next snip seems far more meaningful in a negative sense.
The political stakes for Mr Monti also rose on Thursday. Giorgio Napolitano, the Italian president and a strong Monti backer, said that political support for his technocratic government was slipping – an implicit warning to European leaders that Mr Monti needed to return from Brussels with assistance.
“Conflicts and political polemics among the forces that support this government are increasing,” Mr Napolitano said a written statement.
Euro Surges After EU Leaders Renounce Seniority…